The Central Bank of Nigeria (CBN) has urged financial institutions to enhance their compliance frameworks to curb illicit financial flows and safeguard the country’s financial system.
This call was made at the Mandatory Compliance and Anti-Money Laundering (AML) Training Workshop held in Lagos on 28 February 2025. Organised in collaboration with Citi, the event gathered compliance officers, trade operations specialists, and correspondent banking teams to discuss emerging financial risks and regulatory expectations.
Shola Phillips, special adviser to the CBN Governor on Compliance, stressed that Nigerian banks must adhere to evolving international compliance standards to maintain credibility and sustain correspondent banking relationships.
“Regulators expect financial institutions to maintain dynamic, risk-based AML/CFT programmes that are responsive to the evolving financial environment. Proactive engagement with regulatory developments and the integration of innovative compliance solutions is essential for institutions to meet these expectations effectively,” she stated.
Phillips warned that failure to strengthen compliance frameworks could lead to repercussions from international financial institutions, limiting Nigerian banks’ access to global banking networks.
At the workshop, global financial experts noted the importance of rigorous compliance measures in mitigating financial risks.
Siobhan Ni Ealaithe, managing director of Citi’s Correspondent Banking Group, spoke on the role of governance structures in preventing illicit financial activities. She noted that compliance protocols such as Know Your Customer (KYC), Know Your Business (KYB), and Know Your Transaction (KYT) were critical in enhancing financial transparency.
Stephanie Bailey, head of EMEA AML Risk Management for Foreign Correspondent Banking, revealed that an estimated $3 trillion in illicit funds flow through the global financial system annually.
She urged Nigerian banks to adopt advanced due diligence processes and technology-driven risk assessments to stay ahead of financial crime threats.
The Central Bank of Nigeria reaffirmed its determination to uphold strict regulatory standards to protect Nigeria’s financial ecosystem. Governor Olayemi Cardoso, in a statement, stressed that regulatory compliance is fundamental to maintaining trust and stability in the financial sector.
“A strong financial system is built on trust, and trust is earned through integrity and compliance. The CBN will continue to set high regulatory standards to protect Nigeria’s financial ecosystem and ensure its alignment with global best practices,” he said.
As part of its work to strengthen oversight, the apex bank is intensifying supervision, deploying digital monitoring tools, and ensuring that Nigerian banks adopt proactive compliance strategies.
